Thailand remains one of Southeast Asia’s most popular destinations for foreign investors, entrepreneurs, and digital nomads looking to start a business. With a robust infrastructure, access to ASEAN markets, and an improving regulatory climate, setting up a company in Thailand can be a profitable venture.
However, the registration process is not without its hurdles—particularly when it comes to filling out the required forms and documentation. Even seemingly minor errors in paperwork can delay your company registration in Thailand or lead to outright rejection by authorities.
In this article, we’ll explore the most common mistakes people make when handling Thai company registration forms and provide practical tips on how to avoid them. Whether you’re a first-time investor or expanding your operations, these insights can help streamline the company formation process.
1. Inaccurate or Mismatched Personal Information
One of the most frequent issues during company formation in Thailand is inconsistencies in the personal information of shareholders, directors, or promoters. Authorities expect every detail to match exactly across documents.
Common errors include:
- Spelling differences in names across forms and passports
- Incorrect passport numbers
- Mismatched addresses
- Using nicknames or abbreviations instead of legal names
These discrepancies often result in the rejection of your application, requiring re-submission and delaying the setup process.
How to avoid it:
Always double-check the spelling and details of all names and identification numbers across every form and attached document. Use only the official legal names found on passports or Thai ID cards. If you’re submitting forms in Thai, ensure names are transliterated correctly and consistently.
2. Using an Unapproved Company Name
Choosing your company name may seem like a simple step, but Thailand has strict rules regarding what names are acceptable. Many applications are rejected because the chosen name is either too similar to existing businesses or contains restricted words.
Additionally, if you submit forms with a company name that hasn’t yet been approved by the Department of Business Development (DBD), your application will be denied.
How to avoid it:
Reserve your company name through the DBD’s online system before submitting any forms. Make sure the name follows Thai naming regulations and doesn’t include prohibited terms like “bank,” “insurance,” or “royal.” Have backup name options in case your first choice is unavailable.
3. Incorrect Share Structure or Capital Declaration
Your company’s shareholding structure must comply with Thai laws, particularly regarding foreign ownership. For most sectors, foreign investors cannot own more than 49% of a Thai company unless a Foreign Business License is obtained.
Problems often arise when the declared capital doesn’t match the number of shareholders or when the amount is not sufficient to support visa or work permit applications.
Typical errors include:
- Capital amount not divisible by number of shares
- Declaring lower capital than required for foreign-owned companies
- Incorrect share distribution between Thai and foreign shareholders
How to avoid it:
Consult with a legal advisor to determine the ideal capital structure for your business. If you’re applying for work permits or a visa, you may need at least 2 million THB in registered capital per foreign employee. Ensure all figures match across your forms, shareholder lists, and the company’s Articles of Association.
Also Read: What is the Process of Company Formation in Indonesia
4. Errors in the Objectives and Business Activities Section
One critical part of setting up a company in Thailand is declaring your business objectives. These are listed in the company registration form and define what your company is legally allowed to do.
Common mistakes in this section include:
- Vague or overly broad business activities
- Including restricted activities under Thai law
- Forgetting to align the objectives with VAT registration or licensing needs
If your objectives are too generic or include activities not permitted under Thai law, your application can be delayed or rejected.
How to avoid it:
Be precise and specific about your business activities. Avoid copying generic templates unless they clearly match your business model. Also, make sure your objectives align with the services or products you plan to offer and comply with sectoral regulations.
5. Failing to Properly Appoint and Document Directors
A company in Thailand must have at least one director. Many applications are delayed because of unclear appointment terms, missing signatures, or incorrect supporting documents for the director(s).
Frequent problems include:
- Not indicating the authority of each director (e.g., signing authority)
- Missing or incorrect director details
- Failing to attach the required documents (passport copies, signed consent, etc.)
Improper appointment of directors can complicate future business operations, banking, and legal matters.
How to avoid it:
Clearly outline the powers of your directors in your registration documents. Confirm that all supporting documentation, including signed consent forms and identification copies, are included and accurately filled out. If using multiple directors, indicate whether they can act independently or jointly.
6. Omitting Required Attachments and Translations
Another common mistake is forgetting to attach required documents or submitting them in the wrong language. For example, foreign passports, leases, or contracts often need to be translated into Thai and certified before submission.
Omitted documents or poor translations can stall the registration process indefinitely.
How to avoid it:
Prepare a checklist of all required attachments, including:
- Identification documents for shareholders and directors
- Lease agreement for the company’s registered address
- Signed consent of the landlord
- Thai translations of foreign documents certified by a licensed translator
Make sure all supporting files are submitted in the format and language requested by the DBD.
Also Read: Documents Required for Company Registration in Liberia
7. Ignoring Post-Registration Steps
Even after your company is registered, missing critical follow-up steps can jeopardize your business operations. These include:
- Registering for corporate tax and VAT
- Opening a corporate bank account
- Obtaining a Social Security number
- Registering for employer obligations
Many new business owners think registration alone is sufficient, but post-formation compliance is essential to stay in good standing.
How to avoid it:
Create a checklist of all post-registration requirements. Hire an accountant or corporate services provider familiar with local compliance rules to guide you through the steps, particularly if you plan to hire staff or apply for foreign work permits.
Final Thoughts
Filling out company registration forms in Thailand may seem like paperwork, but it’s a critical step that lays the legal foundation of your business. Even small mistakes can result in major delays, legal issues, or rejections from Thai authorities.
By being meticulous with your documents, understanding the local laws, and seeking expert guidance when needed, you can ensure a smoother company formation process.
Whether you’re forming a Thai Limited Company, a BOI-promoted entity, or a joint venture, avoiding these common errors will save time, money, and stress—and set your business up for long-term success.
FAQs
1. How long does it take to register a company in Thailand?
The process typically takes 1–2 weeks if all documents are correctly submitted. Delays often occur due to documentation errors or missing approvals.
2. Can a foreigner own 100% of a company in Thailand?
Yes, but only under specific conditions, such as through the Board of Investment (BOI) promotion or with a Foreign Business License. Otherwise, foreigners are generally limited to 49% ownership in most sectors.
3. What is the minimum capital required for setting up a company in Thailand?
There’s no fixed minimum, but to support a foreign work permit, the company generally needs 2 million THB in registered capital per foreign employee.